The administrators of collapsed DIY chain Focus have confirmed that about 3,000 jobs will go after they failed to find a buyer for the loss-making chain. A massive everything-must-go sale will start on Saturday.

Ernst & Young said it had hired Gordon Brothers, a specialist retail agent, to advise it on closing down the chain. Private equity-backed Focus, which had debts of about £230m, collapsed earlier this month and buyers have been found for only 55 out of its 178 shops. The DIY chain employed 3,920 people and the sale of clusters of stores to rivals B&Q and Wickes, as well as discount chain B&M Retail, has saved just 900 jobs.

The scale of the closure programme is another grim milestone for the beleaguered UK retail sector, which continues to suffer as a result of weak consumer spending more than a year after the end of the recession. The jobs blow follows last week's announcement by Mothercare that it planned to close 110 of its high street shops, as trade shifted online and to out-of-town retail parks where the operating costs were lower.

Simon Allport, one of the administrators, said: "While we have been successful in securing up to 900 jobs from the sale of 55 stores in three separate deals, finding a buyer for the whole of the business has not been possible."

Meanwhile JJB Sports' new management team said the tough climate meant it would take up to five years to turn around the loss-making retailer. Its annual results saw JJB fall to an operating loss of £181.8m on sales of £362.9m after a torrid year in which the Wigan-based chain was put through a second restructuring. "The restructuring of JJB will not be easy or quick and will most likely take three to five years," said its chairman, Mike McTighe. "The retail environment is challenging, will remain so for some time and we face intense competition."

Focus's problems were compounded by weak consumer confidence. The DIY sector has been among the hardest hit as the housing market, one of the most important forces behind spending on home improvements, seized up. "UK retailers are facing one of the most challenging retail environments in recent times and the DIY sector has become highly competitive, with only the strongest players being able to thrive and survive," said Allport. He said the administrators were still in talks about a number of stores but the plans to liquidate the stock would see stores close and remaining employees going through a "redundancy process".

Private equity firm Cerberus bought Focus, which had debts of £174m, in 2007 for £1. It drafted in Bill Grimsey, former boss of the Big Food Group which owned the Iceland frozen food chain, to lead it. However despite heavy investment by Cerberus and two deals with landlords to cut its rent bill, Focus struggled to compete with larger rivals B&Q, Homebase and Wickes. Last year an attempt to sell the ailing business failed. "The closing-down sale begins this weekend with discounts across all stock lines," added the administrators.

The situation for customer refunds is unclear, with administrators dealing with orders on a case-by-case basis. Affected shoppers have been advised to call a freephone helpline, 0800 436436.